What happened?
Denver District Court Judge Heidi Kutcher ordered pastor Eligio “Eli” Regalado Jr. and his wife Kaitlyn to repay $3.39 million in a case of cryptocurrency fraud. The couple had defrauded over 600 church members and Christian community investors through their crypto scheme, INDXcoin. Following a three-day bench trial, the court found the couple guilty of securities fraud as they sold worthless tokens between June 2022 and April 2023.
Who does this affect?
The fraudulent activity conducted by the couple has directly impacted over 600 church members and Christian community investors who invested in their INDXcoin scheme. This case also affects the larger scope of cryptocurrency investors by drawing attention to the vulnerability of religious communities to such scams, and contributes to the growing trend of faith-based crypto fraud across the United States.
Why does this matter?
This case matters due to its significant financial and trust impact on a large number of community members, highlighting the potential for misuse within the crypto space. It also emphasizes a concerning pattern of faith-based crypto frauds that exploit the trust of religious communities. This kind of fraud could potentially undermine confidence in genuinely promising cryptocurrency technology and affect the overall market sentiment.